Regional Utility Transforms Manual Check Payment Processing with CheckAlt's Lockbox Solution

How Adding Lockbox Improved Check Processing for This Utility Company

A regional water service processing more than 2,500 checks each month faced growing operational strain from fully manual, in-house check payment processing. Seasonal volume spikes and limited accounting resources slowed posting times, delayed cash flow, and increased the risk of errors and misplaced payments.

By implementing CheckAlt’s Lockbox solution, this $40 million utility provider eliminated manual handling, accelerated receivables, and strengthened financial controls.

challenge

Manual Work, Slower Cash Flow, and Operational Drag

Before partnering with CheckAlt, the utility relied entirely on its small accounting team to open mail, process check payments, key remittance data, and post transactions across customer accounts. This approach created several operational burdens:

• More than 25 hours per week spent on manual payment handling
• Delayed funds availability that extended Days Sales Outstanding (DSO)
• Posting accuracy stuck at 93%, creating reconciliation challenges
• Security and chain-of-custody risks, including past incidents of misplaced payments
• Limited capacity to manage seasonal spikes in payment volume 

As demand increased, the team struggled to keep pace. Cash flow slowed, and employees were unable to shift attention to more strategic financial activities. 

solution

Secure, Fully Managed Lockbox Processing

This utility selected CheckAlt’s Lockbox solution to modernize its receivables operations. The organization required a solution that could provide: 

• Strategically located check processing centers with multiple daily pickups
• Automated mail opening, check processing, scanning, and data capture
• Digital imaging of remittance documents
• A secure chain of custody with full audit trails
• Outsourced processing infrastructure capable of scaling easily during peak periods 

By partnering with CheckAlt, the utility established a fully managed, efficient, and transparent receivables workflow designed for accuracy, speed, and scalability.

results

Faster Deposits, Stronger Controls, and Better Use of Staff Time

Within weeks of implementation, the utility achieved measurable improvements: 

• Reduced DSO by 2.5 days, accelerating $175,000 in cash flow
• Eliminated 25 hours per week of manual check processing
• Increased posting accuracy to 99.5%
• Stopped payment loss incidents through standardized audit controls
• Reallocated staff from clerical processing to higher-value financial work

These improvements enabled faster access to funds, smoother peak-period operations, and stronger financial oversight. 

Key Takeaways

This utility's experience demonstrates how even routine manual check payment processing can strain financial operations—and how a modern lockbox solution can help improve accuracy, accelerate cash flow, and free up staff for more strategic work. By partnering with CheckAlt, the organization gained improved visibility, secure processing, and a more resilient receivables infrastructure that supports both daily operations and long-term growth.

Ready to Free Your Finance Team from Manual Check Processing? 

If manual check payment processing is slowing your team down, creating backlogs, or limiting cash flow visibility, a fully managed lockbox approach can help. By outsourcing lockbox processing to CheckAlt, organizations can reduce manual work, accelerate deposits, and improve posting accuracy, allowing finance teams to focus on higher-value work.

Get in touch with us today and discover how we can take manual check payment processing off your hands. While you're at it, be sure to follow us on LinkedIn and subscribe to CheckAlt Connect, our monthly email newsletter to keep on top of the latest in payments.